TRENTON, N.J. — A proposed extra tax on New Jerseyans' lottery winnings stalled today after it became clear it was unlikely to be approved by a key state Senate panel.
"It didn't have the votes," said Senate Budget Committee Chairman Paul Sarlo (D-Bergen).
The bill (S1767) would impose an additional 0.5 percent tax on lottery winnings of more than $600.
The money would be used to fund after school programs run by non-profit groups in municipalities where at least 40 percent of the school district's students are "at risk."
New Jersey currently taxes lottery winnings on a sliding scale that peaks at 10.8 percent. On the federal level, the winnings are taxed as ordinary income. The federal rate for income of more than $406,750 for a single person is 39.6 percent.
According to 2012 data from the Tax Foundation, New Jersey's top rate for lotto winners is the highest of any state in the nation.
The budget committee's endorsement was the next step before the bill was to get a vote in the full state Senate. It was already approved by the Senate's state government committee in May.
Sarlo declined to say which committee members opposed the bill, or whether he supported it.
"When the bill comes up for a vote, you'll see my vote," he said.
The bill's sponsor, state Sen. Ronald Rice (D-Essex), said he believes it will be approved by the committee when he has a chance to talk to members about it.
"I'm confident it will pass. With this bill, it makes good sense," he said.
Tax and spend politicians. No surprise there.
So in NJ if you win $1M on the second prize of powerball you'll fork over a little over$500,000 to the tax man? That's gotta hurt!
I suppose it's half a mil that you didn't have so it's still good.
Yea, anytime I look @ the C/V I automatically say to myself,
Ok , so a little less then 50% is ...
Despite California's warts and all- one can savor their lottery win out here knowing that you will only have Uncle Sam to pay and local city taxes depending on where you live.
Very sobering especially knowing that only about 50 % of the ticket price money goes into the jackpot.
"it makes good sense" according to the Democratic senators pushing the bill. These creeps only care about spending and any means to get the funds is fair game to them.
N.J. already has the largest lottery state tax and yet these greedy pigs want more.
You're right about that one but that could change at anytime. California is looking for more tax revenue to offset the budget deficits.
Taxing lottery winnings might just be what the state coffers need. You can bet the folks at the Franchise Tax Board are chomping at the bit to get even more money from you.
If CA started taxing lottery winnings, CA would be the worst place in the country to play due to high taxes and the paramutual payouts.
You know what's sad? The people with the power of social media still cannot unite and boycott playing and force the government's to soften its money grab
Ive got friends who just moved here to NC from CA because the state taxes were too high. Is it really 15% state tax out there or is that the sales tax?? Cause either way good God thats high
Anyone willing to bet that State Senator Ronald Rice will be re-elected when the time comes for the poor voters to choose for more taxes on the "rich"?
Come on, over $600.00 is ridiculous low amount, why not start at $500k?
You are no Moron,who sponsored S1767, the poor love that mantra,"Tax the rich" it gets their vote every time, but they are going to be plenty perturbed when they have to fork over additional taxes on winnings,under $1,000.00.
Anyone in the NJ State Senate that goes along with this bill should be labeled, "Bloodsuckers" because that is what you are.
Mr. Sarlo will no doubt vote for the bill (" He's confident it will pass") but maybe he wants to wait until after the election, to avoid the possible voter's wrath?
Got the same thing going on in the local elections, candidates stating they are going to raise more taxes to pay for their ( unmentioned failing) educational systems,instead of looking for ways to cut wasteful spending.
Anyone who hits it big in N.J. should look to moving to a state that is more tax friendly.
It is totally understandable. New Jersey is selling too many tickets and they cant handle all those sales so they have to do something to reduce the number of tickets they sell to a more manageable level. It would work on me...I'd stop buying them.
Lottery players in NJ should play the Massachusetts lottery instead. You don't have to live in Massachusetts to play.
The money would be used to fund after school programs run by non-profit groups in municipalities where at least 40 percent of the school district's students are "at risk."
I have no idea of what "at risk" means in this context, but it sure looks like non-profit groups want the lottery winners to subsidize their agendas. To me that is like forcing winners to donate to the bill's sponsor favorite charity. And what's worse it only applies to tiny percentage of tax payers and many may live in school districts where less than 40% are "at risk".
A lot of players in Jersey dodge the bullet by playing with Tony Bag a donuts.